The crypto industry is growing exponentially, with continuous inventing of new application areas and uses in the industry. From a single currency to Bitcoin (BTC-USD), The cryptocurrency world is currently growing to over 10,000 currencies, with a market size of about $ 2 trillion.
Regulators around the world are paying attention to cryptocurrencies, but regulations are slowly evolving as the masses continue to adapt blockchain technology at a faster pace. This adoption will be even faster in countries where fiat currency turnover is a challenge, such as Argentina, Russia, Iran, Cuba and Turkey.
On the other hand, growing interest from young investors is driving adoption in key markets such as India, where more people are investing (or trading) in cryptocurrencies than stocks of listed companies.
The question remains, how can you dig into the cryptocurrency pie without worrying about the risk of wallets, digital keys, or strict regulatory measures?
One answer is to invest in companies that are digging deeper into the blockchain application area, or that are focused on mining the crypto itself.
Riot Blockchain, two major cryptocurrency mining companiesRiot), And Hive Blockchain (HIVE), We have made great strides in this area and will determine if investors should consider them as potential investments.
The numbers represent the story of RIOT. At the end of 2021, the company operated 30,907 miners, at 3.1 Exahash (EH / s) per second, an increase of 444% over the previous year.
In addition, the company expects to reach a total BTC mining hash rate capacity of 12.8 EH / S in January 2023. Revenues are estimated to jump 16-fold to $ 213.2 million in 2021 and grow to about $ 721 million over the next two years.
If a company makes more money without making more money, the value of the investor is lost. RIOT gave a positive score in this regard, reducing the net loss reported in 2021 by nearly 50%. In addition, the company’s mining revenues increased by 1,437% during this period.
RIOT had 4,884 BTC at the end of 2021, but last year it was only 1,078 BTC. It is expected that this ever-increasing horde of values will benefit the company during times of rising cryptocurrency prices.
In addition, RIOT also hosts BTC mining equipment for institutional investors. Another important advantage is that RIOT has developed a 200 MW immersion cooling technology at the Whinstone facility.
According to the company, this is “the industry’s first industrial-scale immersion cooling deployment of Bitcoin mining hardware”. The operational benefits of this move include longer machine life, lower maintenance requirements, higher hash rates, and improved application-specific integrated circuit (ASIC) performance.
The gross profit margin of 61.5% is above the industry median of 49.5%. The company invests heavily in infrastructure, as evidenced by its 197.9% ratio of CAPEX to sales. This shows that RIOT is investing $ 2 for every $ 1 in sales. Conversely, the median industry is 2.2%.
RIOT’s share price rose 33.5% last month. HC Wayne Light Kevin Dede Stock prices will rise another 117.4%. Analysts repeatedly evaluated RIOT’s buying with a $ 50 price target.
Street analysts are enthusiastic about stocks with strong buys, based on seven buys and one hold. The Average price target for riots $ 44.25 means an upside potential of 92.39%.
HIVE Blockchain, a Canadian crypto miner, operates in Canada, Sweden and Iceland. In the latest third-quarter report, the company recorded a nearly four-fold increase in revenue over the same period last year. At the end of the quarter, HIVE totaled 1,813 BTC and 23,290 Ethereum (ETH-USD) Worth $ 168 million.
The company was cautious about its capital allocation strategy. HIVECFO Darcy Daubaras said: 12% of the cost of capital. HIVE’s modest equity financing was at a premium to prevailing market prices or stock prices, which allowed us to generate the highest solid returns on our investment capital compared to our peers. ”
This increase in revenue reflects rising crypto prices, increased BTC production due to the acquisition of HIVE’s Quebec and Atlantic facilities, and the addition of new miners. In February, the company’s Bitcoin mining capability was 1.9 Exahash, and ETH mining capability increased from 4.56 terahash to 4.88 terahash.
HIVE’s gross profit margin of 86.4% is superior to RIOT. In addition, HIVE is already profitable with a net profit of 79.2%, well above the industry median of 5.7%.
While the ratio of CAPEX to HIVE sales is fairly high at 98.7%, RIOT seems to be willing to invest in technology and infrastructure, which are precursors to future revenue growth.
HIVE’s share price has risen 11% in the past month, but Stifel Nicolas analysts Susan Sukmar Equities have the potential to rise another 65.2%. Analysts have begun stock coverage with a price target of $ 3.75.
Street analysts are enthusiastic about stocks with strong buys based on three buys. The HIVE average price target $ 3.85 means a possible increase in%.
Analysts consider RIOT to be the most likely of the two names. Nevertheless, both miners allow investors to invest in crypto space with the potential growth offered. These two names are in a position to benefit, as the world is slowly but surely embracing cryptography.
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